Skip to main content
Glossary of Standard Metrics

Definitions of common metrics

Joshua Vance avatar
Written by Joshua Vance
Updated over 2 weeks ago

Profit and Loss Statement (Income Statement)

  • Revenue: GAAP Revenue for the reporting period.

  • Cost of Goods Sold: Direct costs incurred in the production of sold goods or services.

  • Gross Profit: GAAP Revenue - Cost of Goods Sold.

  • Gross Margin: Gross Profit divided by Revenue from the Income Statement as a percentage.

  • Total Operating Expenses: Total Operating Expenses from the Income Statement.

  • EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization.

  • Net Operating Profit: Operating profit calculated as Gross Profit minus Total Operating Expenses.

  • Net Income: Net Income or Loss from the Income Statement.


Balance Sheet

  • Cash In Bank: Cash In Bank equals the total cash and cash equivalents from the balance sheet.

  • Assets: Total Assets from the Balance Sheet.

  • Liabilities: Total Liabilities from the Balance Sheet.

  • Equity: Total Equity from the Balance Sheet.

  • Current Assets: Assets that can reasonably be liquidated to cash within one year.

  • Current Liabilities: Short-Term obligations due within one year.

  • Long-term Liabilities: Long-term obligations due more than one year from now.

  • Accounts Receivable: Amounts currently owed to the company for goods and services already delivered.

  • Accounts Payable: Payments owed to vendors for services previously rendered but not yet paid for.


Cash Flow Statement

  • Net Burn: Net Burn is equal to Cash Flow from Operating Activities on the Cash Flow Statement. Decreases in Cash are marked as negative values.


Other

  • Runway: Estimated number of months from the end of the reporting period until the company runs out of cash. Runway accounting integration calculation = Cash in Bank / Average of last three months of Net Burn

  • Headcount: All full-time employees.

Did this answer your question?